\u3000\u3 Shengda Resources Co.Ltd(000603) 444 G-Bits Network Technology(Xiamen)Co.Ltd(603444) )
Event: G-Bits Network Technology(Xiamen)Co.Ltd(603444) released the financial report for the first quarter of 2022. During the reporting period, the company achieved a total operating revenue of 1.229 billion, a year-on-year increase of 9.98%, a month on month increase of 8%, a year-on-year decrease of 4.27% and a month on month increase of 33.1%. After deduction, the net profit attributable to the parent was 333 million, a year-on-year decrease of 6.14% and a month on month increase of 49.3%. In the first quarter of 2022, the net operating cash flow was 328 million, which was basically flat year-on-year.
Comments: the performance is in line with expectations.
The revenue increased steadily, and the net profit decreased slightly compared with the same period due to the increase of employee costs and the decline of investment income of associated enterprises.
In the first quarter of 2022, the company's long-term operating products such as "ask for a hand tour" and "a read is carefree" continued to perform well. According to the statistics of Qimai, they have always been in the top 50 of the best-selling list of IOS games, and the base flow is stable. New products such as "world catapult", "underground castle 3: Soul poem" and "Moore Manor" launched in the second half of 2021 have contributed to the increase of revenue. The company's overall revenue has always been in a healthy rising channel. In the second quarter, with the opening of the anniversary of "ask for a hand tour" in April, it is expected that the overall flow will be further improved. Up to now, both "ask for a hand tour" and "Yinian Xiaoyao" are in the top 10 of IOS best-selling list.
In the first quarter of 2022, compared with the same period last year, the number of employees increased by 270, driving the increase of costs and expenses. In the first quarter of 2022, the management expense rate was 7.4%, an increase of 1.8 percentage points compared with the same period last year, and the R & D expense rate was 13.9%, an increase of 0.8 percentage points compared with the same period last year. In addition, the investment income in the same period last year was 70.82 million, only 8.37 million this year. Although the income of the company increased by 10% year-on-year due to the combination of the two factors, The net profit increased by only 2.26% year-on-year, and then superimposed with the profit and loss of minority shareholders, it reached 104 million in the first quarter of 2022, with a year-on-year increase of 33.3%, making the net profit attributable to the parent slightly lower than the same period.
Deferred income (contract liability account) continued to increase significantly month on month. In the first quarter of 2022, the company's contractual liabilities were 640 million, an increase of 55 million compared with 585 million at the end of 2021, indicating that the company's unrecognized deferred preview revenue increased further, with good revenue stability and solid chassis.
Future product reserve: at present, the company's agent products in reserve include 6 versions: Obi Island: dream country (IOS reservation has been opened), dawn elite, Hualuo Chang'an, lost four lands, projectg (code) and ancient treasures, and shopheroes legends, projects (code) and Fengshen fantasy world "Rhythm track" and "Shendu kitchen king" 5, a total of 11 products. Among the recent edition numbers issued by the State Press and publication administration, the company obtained the edition number of "tower Hunter"; Self research projects include M66, etc. Obi Island: dreamland has launched an appointment on IOS. The "reunion appointment" test was launched on April 28. The current number of taptap players' appointments has reached 680000.
Profit forecast and Valuation: we maintain the previous profit forecast. It is estimated that the company's revenue from 2022 to 2023 will be 5.266 billion and 6.181 billion respectively, with a year-on-year increase of 14% and 17%, and the net profit attributable to the parent company will be 1.445 billion and 1.746 billion, with a year-on-year increase of - 2% and 21%. The current market value corresponds to 17x and 14x PE in 2022 and 2023. It is recommended to focus on it and maintain the "buy" rating.
Risk tips: 1) stricter version number supervision policy; 2) The online time of the game is not up to expectations; 3) The risk that the information and data used in the research report are not updated in time.
